Financial Services Bill (HL Bill 48)

(2) “Public consultation requirement” has the same meaning as in paragraph 7.

Information

9 (1) The FSA may disclose to the PRA any information which the FSA considers
that it is necessary or expedient to disclose to the PRA in preparation for the
5commencement of any provision of this Act conferring functions on the
PRA.

(2) Section 348 of FSMA 2000 (restrictions on disclosure of confidential
information) has effect subject to sub-paragraph (1).

Postal Services Act 2000

10 (1) 10The following amendments of the Postal Services Act 2000 have effect until
the repeal by the Postal Services Act 2011 of the provisions amended has
been brought into force for all purposes.

(2) In section 7 of the Postal Services Act 2000 (exceptions), in subsection (5), in
the definition of “deposit taker”, for “Part 4” substitute “Part 4A”.

(3) 15In Schedule 7 of that Act (disclosure of information), for paragraph 3(2)(s)
substitute—

“(s) the Financial Conduct Authority,

(sa) the Prudential Regulation Authority,”.

Section 108(2)

SCHEDULE 21 20Transfer schemes

Part 1 Property, rights and liabilities of Financial Services Authority

Interpretation

1 In this Part of this Schedule—

• 25“the Bank” means the Bank of England;

• “the FSA” means the Financial Services Authority.

Transfer schemes

2 (1) The FSA must make one or more schemes under this paragraph for the
transfer of property, rights and liabilities of the FSA—

(a) 30to the PRA or the Bank,

(b) to the PRA and the Bank, to be held jointly, or

(c) to the FSA and either the PRA or the Bank or both, to be held jointly.

(2) A scheme under this paragraph made by the FSA is not to be capable of
coming into force unless it is approved by the Treasury.

(3) 35The FSA may not submit a scheme under this paragraph to the Treasury for
their approval without the consent of the Bank.

(4) Sub-paragraph (5) applies if—

(a) the FSA fails, before such time as may be notified to it by the
Treasury as the latest time for submission of a scheme under this
paragraph in connection with the transfer by or under this Act of
5specified functions of the FSA to the PRA, to the Bank, or to the FSA
and the PRA, to submit such a scheme to the Treasury for their
approval, or

(b) the Treasury decide not to approve a scheme that has been submitted
to them by the FSA (either with or without modifications).

(5) 10Where this sub-paragraph applies, the Treasury may, after consultation with
the FSA and the Bank, make a scheme under this paragraph for the transfer
of such of the FSA’s property, rights and liabilities as appear to them
appropriate to be transferred as mentioned in sub-paragraph (1) in
consequence of the transfer of functions by or under this Act.

(6) 15The property, rights and liabilities which are the subject of a scheme under
this paragraph are transferred in accordance with the provisions of the
scheme on such day as the scheme may specify.

(7) The FSA must provide the Treasury with all such information and other
assistance as they may reasonably require for the purposes of, or otherwise
20in connection with, the exercise of any power conferred on the Treasury by
this paragraph.

(8) In the following provisions of this Part of this Schedule a scheme under this
paragraph is referred to as a “transfer scheme”.

3 The property, rights and liabilities that may be the subject of a transfer
25scheme include—

(a) any that would otherwise be incapable of being transferred or
assigned, and

(b) rights and liabilities under a contract of employment.

4 A transfer scheme may—

(a) 30apportion, or provide for the apportionment of, property, rights and
liabilities,

(b) define the property, rights and liabilities to be transferred by
specifying them or by describing them (including describing them
by reference to functions that are transferred by or under this Act);

(c) 35contain provision for the payment of compensation by the PRA or
the Bank to the FSA;

(d) contain provision for the payment of compensation by the FSA, the
PRA or the Bank to any person whose interests are adversely affected
by the scheme;

(e) 40contain supplemental, incidental, transitional and consequential
provision.

5 A transfer scheme which relates to rights and liabilities under a contract of
employment—

(a) must provide for the transfer to which the scheme relates to be
45treated as if it were a relevant transfer for the purposes of the
Transfer of Undertakings (Protection of Employment) Regulations
2006 (“TUPE”), but

(b) may, in connection with functions becoming exercisable (alone or
jointly) by the PRA—

(i) provide for the transfer of rights and liabilities under a
contract of employment to the Bank, and

(ii) provide for TUPE to have effect as if the relevant transfer
were a transfer to the Bank.

5Part 2 Property, rights and liabilities of Office of Fair Trading

Interpretation

6 In this Part of this Schedule “the OFT” means the Office of Fair Trading.

Transfer schemes

7 (1) 10This paragraph applies if after the passing of this Act the Treasury make an
order under section 22 of FSMA 2000 which has the effect that an activity—

(a) ceases to be an activity in respect of which a licence under section 21
of the Consumer Credit Act 1974 is required or would be required
but for the exemption conferred by subsection (2), (3) or (4) of that
15section or paragraph 15(3) of Schedule 3 to FSMA 2000, and

(b) becomes a regulated activity for the purposes of FSMA 2000.

(2) The OFT must make one or more schemes under this paragraph for the
transfer of property, rights and liabilities of the OFT to the FCA.

(3) A scheme under this paragraph made by the OFT is not to be capable of
20coming into force unless it is approved by the Treasury and the Secretary of
State.

(4) The OFT may not submit a scheme under this paragraph to the Treasury or
the Secretary of State for their approval without the consent of the FCA.

(5) Sub-paragraph (6) applies if —

(a) 25the OFT fails, before such time as may be notified to it by the
Treasury as the latest time for submission of a scheme under this
paragraph in connection with an order falling within sub-paragraph
(1), to submit such a scheme to the Treasury and the Secretary of
State for their approval, or

(b) 30the Treasury or the Secretary of State decide not to approve a scheme
that has been submitted to them by the OFT (either with or without
modifications).

(6) Where this sub-paragraph applies, the Treasury may, with the approval of
the Secretary of State, make a scheme under this paragraph for the transfer
35to the FCA of such of the OFT’s property, rights and liabilities as appear to
the Treasury appropriate to be transferred to the FCA in consequence of the
order falling within sub-paragraph (1).

(7) The property, rights and liabilities which are the subject of a scheme under
this paragraph are transferred in accordance with the provisions of the
40scheme on such day as the scheme may specify.

(8) The OFT must provide the Treasury or the Secretary of State with all such
information and other assistance as either of them may reasonably require
for the purposes of, or otherwise in connection with, the exercise of any
power conferred on the Treasury or the Secretary of State by this paragraph.

(9) In the following provisions of this Part of this Schedule a scheme under this
paragraph is referred to as a “transfer scheme”.

8 The property, rights and liabilities that may be the subject of a transfer
scheme include—

(a) 5any that would not otherwise be capable of being transferred or
assigned, and

(b) rights and liabilities under a contract of employment.

9 A transfer scheme may—

(a) apportion, or provide for the apportionment of, property, rights and
10liabilities,

(b) define the property, rights and liabilities to be transferred by
specifying them or by describing them (including describing them
by reference to functions that are transferred by the order falling
within paragraph 7(1));

(c) 15contain provision for the payment of compensation by the FCA to
the OFT;

(d) contain provision for the payment of compensation by the OFT or the
FCA to any person whose interests are adversely affected by the
scheme;

(e) 20contain supplemental, incidental, transitional and consequential
provision.

10 A transfer scheme which relates to rights and liabilities under a contract of
employment must provide for the transfer to which the scheme relates to be
treated as if it were a relevant transfer for the purposes of the Transfer of
25Undertakings (Protection of Employment) Regulations 2006.